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Figure 20-1 -Refer to Figure 20-1.If the Government Imposes a Minimum Wage

Question 114

Multiple Choice

Figure 20-1
Figure 20-1 -Refer to Figure 20-1.If the government imposes a minimum wage below Wo,which effect is it likely to have A) It will increase employment to a level above Q₀ . B) It will reduce employment to a level below Q₀ . C) The market equilibrium wage will reset to the level of minimum wage. D) The market equilibrium wage will be Wo.
-Refer to Figure 20-1.If the government imposes a minimum wage below Wo,which effect is it likely to have

A) It will increase employment to a level above Q₀ .
B) It will reduce employment to a level below Q₀ .
C) The market equilibrium wage will reset to the level of minimum wage.
D) The market equilibrium wage will be Wo.

Correct Answer: